sebi:Order/SU/VA/2021-22/15327

SEBI · SEBI · 2021-04-30 · Sareena P U, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Violation established ex parte; monetary penalty imposed

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 15F
• s. 28A

Regulations

• Reg. 3
• Reg. 4(1)
• Reg. 3(a)

Parties

• Priti Sultania

Holding

The Noticee violated regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations, 2003 by executing non-genuine reversal trades in illiquid stock options at BSE, and a penalty of Rs. 5,00,000 under section 15HA of the SEBI Act was imposed on Ms. Priti Sultania.

Full text

Adjudication Order in respect of Priti Sultania in the matter of dealings in Illiquid Stock Options at BSE Page 2 of 15 with a significant difference without any basis for such change in the contract price. The aforesaid reversal trades allegedly resulted into generation of artificial volumes, leading to allegations that the Noticee had violated the provisions of regulations 3(a),(b),(c),(d) and regulations 4(1),4(2)(a) of the SEBI (Prohibition of Fraudulent and Unfair Trading Practices related to Securities Markets) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”).

Adjudication Order in respect of Priti Sultania in the matter of dealings in Illiquid Stock Options at BSE Page 3 of 15 S. No . Contract Name Avg . Buy Rat e (Rs. ) Total Buy Volu me (no. of units ) Avg . Sell Rat e (Rs. ) Total Sell Volu me (no. of units ) % of Non Genu ine trade s of Notic ee in the contr act to Notic ee’s Total trade s in the Cont ract % of Non Genu ine trade s of Entit y in the contr act to Total trade s in the Cont ract % of Artifici al Volum e gener ated by Notice e in the contra ct to Notice e’s Total Volum e in the Contra ct % of Artifi cial Volu me gene rated by Notic ee in the contr act to Total Volu me in the Cont ract 1 BOBL15AUG135. 00CEW2 13 72,00 0 18.5 72,00 0 100% 100% 100% 100%

Adjudication Order in respect of Priti Sultania in the matter of dealings in Illiquid Stock Options at BSE Page 4 of 15 Eveningstar Dealtrade Private Limited to sell the same number of units, at exactly the same price.

Source: SecMarx — sebi:Order/SU/VA/2021-22/15327. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.